Nevada Zinc targets farming industry
Nevada Zinc (TSXV: NZN) and Cameron Chemicals entered into an agreement to collaborate to establish a range of zinc-based micronutrient products destined for farms across the world.
In a press release, the companies said the products will be manufactured by Nevada Zinc and marketed by Cameron. Subject to completing production process evaluation studies, Nevada Zinc’s annual production is projected to be up to 25,000 tonnes of zinc-based micronutrient products.
“Based upon this annual production rate, Lone Mountain’s life of mine will be in the range of 15 to 20 years based upon the company’s current resource estimate,” the statement reads.
“The Lone Mountain property has only been partially explored to-date and has good potential to increase in size subject to further exploration programs to be undertaken by the company.”
The miner plans to spend the remainder of 2020 completing a project evaluation which will include studies relating to the mining and production processes that will best suit the project. It will also commence environmental and permitting studies for Lone Mountain, located near Eureka in Nevada, as well as the submission of permit applications.
“Affirmative results from this project evaluation work will allow Nevada Zinc to make a positive project construction decision at the end of the permitting process. There is no assurance currently that the existing mineral resource may be processed on a technical or economic basis,” the brief states.
If a positive construction decision is made, the Toronto-based miner said it will enter into an off-take agreement with Cameron whereby Cameron will purchase 100% of Nevada Zinc’s annual production during the initial term of the off-take agreement, which will be equal to or greater than the project pay-back period as mutually agreed to by the Canadian company and project Capex debt and equity investors.